Madinet Masr had a strong year so far: EGX-listed Madinet Masr’s bottom line soared 149% y-o-y to EGP 1.4 bn in the first nine months of 2023 on the back of record sales, according to the real estate developer’s earnings release (pdf). The company’s revenues rose 48% y-o-y to EGP 4.4 bn during the same period.

A solid quarter: The company saw its net income up 151% y-o-y to EGP 773.2 mn in 3Q 2023, while its revenue climbed 85% to EGP 2.2 bn.

Sales skyrocketed: Gross contracted sales hit a record EGP 14.9 bn in 9M 2023, up 122% y-o-y. Nearly 69% of the sales were at the company’s Taj City project, with Sarai generating the remainder. The company sold a total of 2.6k units in 9M 2023, up 15% y-o-y.

The developer is on track for a record year: Madinet Masr last month predicted that gross contracted sales would exceed EGP 20 bn by the end of 2023.

Deliveries dipped: Madinet Masr deliveries dropped 29% y-o-y to 792 units during 9M 2023 due to a higher inventory of move-in ready units in the comparable period in 2022, the company explained.

SOUND SMART- In real estate, sales ≠ revenues. Most real estate companies book a sale when you sign a contract to buy a home, but only record (some or all) of the value of the unit they sold when they (a) deliver the unit to you or (b) hit a percentage of completion of the overall project. Therefore, in most cases, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

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